The Price System

question 26

Multiple Choice

The price system

• A)is the voluntary exchange system used in the United States.
• B)is old fashioned and is no longer used.
• C)is used only in countries that are developing.
• D)is used to set resource prices only.

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Definitions:

Services

Intangible products or actions that provide value to consumers, differing from goods which are physical items.

Federal Government

The national government of a federal country, which shares sovereignty with constituent states or provinces, responsible for governing national matters.

Social Security Tax

A tax levied on both employers and employees to fund the Social Security program, which provides benefits for retirees, the disabled, and children of deceased workers.

Excise Tax

A tax levied on specific goods or services, such as tobacco, gasoline, and alcohol, typically aimed at discouraging use or raising government revenue.